MADELEINE M. LANDRIEU, Judge.
On February 25, 2011 the Board of Supervisors of Louisiana State University ("LSU"), instituted proceedings to expropriate certain property, including a lot and building owned by Dixie Brewery Company, Inc. ("Dixie"), in connection with the development and construction of LSU's new University Medical Center ("UMC") and the adjacent Veterans Affairs Medical Center ("VAMC").
This appeal is taken from the trial court's November 16, 2012 judgment,
The sole issue on appeal is whether the trial court erred by dismissing Dixie's petition on the basis of res judicata.
In reviewing the granting or denial of an exception res judicata, the appellate court must determine whether the trial court's decision is legally correct or incorrect. Myers v. National Union Fire Ins. Co. of Louisiana, 2009-1517, p. 5 (La.App. 4 Cir. 5/19/10), 43 So.3d 207, 210.
The doctrine of res judicata precludes re-litigation of claims and/or issues arising out of the same factual circumstances when a valid final judgment exists. Id. Louisiana's res judicata statute is La. R.S. 13:4231, which states:
Also relevant is Louisiana Code of Civil Procedure Article 425, entitled "Preclusion by judgment," which provides, in pertinent part: "A party shall assert all causes of action arising out of the transaction or occurrence that is the subject matter of the litigation." The Louisiana Supreme Court has held that in order to preclude a second action under the theory of res judicata, five elements must be satisfied:
Burguieres v. Pollingue, 2002-1385, p. 8 (La.2/25/03), 843 So.2d 1049, 1053.
In the case before us, Dixie concedes in its brief that the first three elements have been met: namely, that the trial court's February 7, 2012 judgment ["the first judgment"] is a valid, final judgment between the same parties. That judgment denied Dixie's "request for a preliminary and permanent injunction enjoining [LSU] from selling or leasing the property referred as [sic] Square 556 or the Dixie Brewery Parcel." Dixie did not seek review of that judgment.
Dixie filed this second petition for injunction on October 12, 2012, praying for exactly the same relief as it had in the first petition. The trial court dismissed the second petition on the basis of res judicata. In reviewing that decision, the pertinent questions are whether Dixie's second petition asserted a cause of action that 1) arose out of the same transaction or occurrence that was the subject matter of the first petition, and 2) existed at the time the first judgment was rendered. The trial court concluded that these two elements had been satisfied. We agree.
Both Dixie's first and second petitions sought to enjoin LSU from transferring the subject property to the V.A. because, according to Dixie, any such transfer would violate Article I, Section 4(H)(1) of the Louisiana Constitution. That section provides, in pertinent part: [T]he state or its political subdivisions "shall not sell or lease property which has been expropriated and held for not more than thirty years without first offering the property to the original owner...."
Dixie contends, however, that the second petition for injunction asserted a cause of action that arose out of a different set of operative facts than those upon which the first petition was based. Therefore, Dixie argues, the cause of action asserted in the second petition did not arise from the same transaction or occurrence as did the cause of action asserted in the first petition. The basis for Dixie's argument is that in its first petition, it relied upon a "Right of Use" agreement between LSU and the V.A. as evidence that the transfer would constitute an illegal sale or lease, whereas, in its second petition, Dixie relied upon a subsequent "Act of Exchange" as such evidence. In its first petition, Dixie asserted it would suffer irreparable harm if its property was unconstitutionally transferred by LSU to the V.A. The trial court declined to grant an injunction. In its second petition, Dixie again asserted that it would suffer irreparable harm if its property was unconstitutionally transferred by LSU to the V.A., and sought the same injunctive relief. The fact that Dixie cited the Right of Use agreement as evidence of unconstitutionality
We therefore conclude, as did the trial court, that the cause or causes of action asserted by Dixie in these two petitions for injunction arose from the same transaction or occurrence — the allegedly unconstitutional transfer of Dixie's property by LSU to the V.A.
Dixie further contends that the cause of action asserted in the second petition did not exist at the time the first judgment was rendered because the Act of Exchange was executed after the date of the first judgment and before the filing of Dixie's second petition for injunction. However, the relevant question is not whether the Act of Exchange existed at the time the first judgment was rendered, but whether Dixie's cause of action existed at that time.
Despite the fact that the Act of Exchange was not executed until July, Dixie was clearly aware at the time it filed the first petition for injunction that LSU intended to transfer the property to the V.A. As stated previously, Dixie's first petition relied upon the Right of Use agreement. The Right of Use agreement itself clearly spells out the parties' intention for the V.A. "to legally acquire a Fee Simple Title Interest in the Premises from LSU as soon as possible...." The Act of Exchange was simply a means of accomplishing the intent expressly stated in the Right of Use agreement. Moreover, the record demonstrates that Dixie has been aware since the onset of this litigation of LSU's intent to transfer to the V.A. all the properties located in the footprint of the VAMC, including the Dixie property. This intent was first documented in two agreements — the 2007 Memorandum of Understanding between the City of New Orleans and the VA (the "MOU") and the 2007 Cooperative Endeavor Agreement between LSU, the City of New Orleans and the State of Louisiana ("CEA"). These agreements provided the basis for the expropriation suit. By the time of the first judgment, several Acts of Exchange had been executed between LSU and the V.A. to transfer other properties in the VAMC footprint. These Acts of Exchange have been used by LSU, the City and the State to transfer the expropriated properties to the V.A. in exchange for the site of the former V.A. hospital in New Orleans, which was devastated by Hurricane Katrina. LSU's intent to transfer Dixie's property, along with all the other properties in the VAMC footprint, to the V.A. was never disguised. Dixie was clearly aware of this eventuality at the time it filed its first petition seeking to enjoin any such transfer. We therefore do not accept
Dixie's final argument on appeal centers on its pending motion to dismiss the expropriation suit. Prior to seeking injunctive relief, Dixie filed this motion in the trial court challenging the validity of the expropriation pursuant to La. R.S. 19:147.
This court has held that the expropriation authority of LSU pursuant to La. R.S. 19:141, et seq. is constitutional.
Accordingly, for the reasons stated, we find that the trial court did not err by granting the exception of res judicata. We therefore affirm the trial court's judgment dismissing the petition for injunction.
Failure to file the motion within the time provided or to serve a copy thereof on the plaintiff constitutes a waiver of all defenses to the suit except claims for compensation.